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Power Play: Better opportunities outside the U.S.

People walk on Pariser Platz square in front of the illuminated Brandenburg Gate in Berlin.
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People walk on Pariser Platz square in front of the illuminated Brandenburg Gate in Berlin.

With the U.S. market sitting near record levels, two veteran market strategists tell CNBC's "Power Lunch"on Friday they are seeing better opportunities overseas.

Hugh Johnson, chairman and chief investment officer at Hugh Johnson Advisors, believes U.S. stocks are overvalued and there is very little upside right now.

"As prospects for Europe improve and the dollar weakens, global and European equities have outperformed the S&P 500. Trends in currencies (the weakness in the dollar) and relative performance of stocks and bonds can last a long time," Johnson said.

He suggests buying iShares Europe or All Cap World Index.

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Darin Richards, principal and chief investment officer at AKT Wealth Advisors, says for the first time since the recession, the majority of his equity exposure it allocated to international stocks. "We have targeted exposure to Europe (both large and small cap) and we have hedged the currency exposure," Richards said.

But Europe is not the only hot spot for Richards, who is overweight emerging Asia, with a bias toward China and India. "Strong relative growth and low valuations make Chinese stocks attractive. India has lagged this year after strong returns in 2014, but there is still viable upside potential if the government is able to act on its pro-growth initiatives," Richards said.

iShares Europe and the All Cap World Index are up 10 percent year-to-date. In Asia, the Shanghai Composite is up 44 percent, while the Sensex is up about one percent this year.